Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: What are your expectations for Q2 same-store sales given the current environment? A: We expect headwinds to continue in Q2 due to consumer pullback. However, we are focusing on our brand relaunch and menu innovations like the quesadilla to drive growth. We anticipate easier comparisons in Q3 and Q4, which should help improve our performance. - Liz Williams, CEO
Q: How effective was the Mango Habanero launch, and what impact do you expect from upcoming product launches? A: Mango Habanero drove trial and showed that consumers want innovation. We are excited about our upcoming launches of Fresco wraps and salads in May and quesadillas in June. These products are expected to attract different consumer segments and drive sales. - Liz Williams, CEO
Q: Can you provide more details on the impact of kitchen equipment investments on labor costs? A: We've rolled out equipment like holding cabinets that improve chicken quality and reduce labor time. These investments are expected to enhance operational efficiency and help manage labor costs. - Liz Williams, CEO and Ira Phils, CFO
Q: Are there regional differences in consumer behavior, particularly among Hispanic consumers? A: We see a consistent consumer pullback across regions and income bands. The Hispanic consumer is under pressure, but the trend is similar across different demographics. - Liz Williams, CEO
Q: What is your guidance for menu pricing for the year? A: We expect menu pricing to be around 3% for the year, with 3% in Q2 and about 2% in Q3 and Q4. - Ira Phils, CFO
Q: Can you elaborate on the development pipeline momentum? A: We are confident in opening 10 new units this year, and the pipeline for next year is strong. We expect to accelerate growth beyond the 10 units planned for this year. - Liz Williams, CEO
Q: What operational challenges did you face in March, and how are you addressing them? A: March was impacted by weather and consumer uncertainty. We also saw some operational execution issues with Mango Habanero. We are focusing on improving order accuracy and customer service to address these challenges. - Liz Williams, CEO
Q: What is the status of the kiosk rollout, and what benefits are you seeing? A: Kiosks are installed in most company restaurants, with some remaining installations planned for this year. We see opportunities to use kiosks as merchandising tools to drive guest engagement and check size. - Ira Phils, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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